Matrix Organizational Structure

As a HR director of a growing international staffing organization providing services in
both North and South America, I would recommend matrix organizational structure. In matrix
organizational structure, authority is shared between the project and functional managers
(Kloppenborg, Anantatmula, & Wells, 2019). Team members, therefore, report to both
managers. Functional managers prioritize and review work while project managers provide
direction for the project (Kloppenborg et al., 2019). There are many benefits that the
organization will get from using this type of organizational structure.
One of these benefits is resource sharing. Matrix organizational structure allows multiple
projects to share available resources (Kloppenborg et al., 2019). These resources include both
equipment and experts. Thanks to such sharing, the organization reduces staff redundancies and
increases efficiency of resource use.
Another benefit is better sharing of information. Matrix organizational structure has open
communication. Thus, information can easily move within the organization without significant
obstruction (Walden, 2019). Better communication enables more collaboration within the
organization. Such quick flow of information also has the potential of speeding up decision-
making.
Lastly, as an organization seeking growth, matrix organizational structure is suitable
because it allows employees to be part of different aspects of the projects of the organization
(Walden, 2019). As a result, they are able to widen their skills set and experience. Thus, within a
short time, the organization will have a large pool of highly skilled and experienced employees.

MATRIX ORGANIZATIONAL STRUCTURE 3
Effect of the proposed organizational structure on customers
While matrix organizational structure is generally beneficial for the organization, its
impact on customers is mixed. On the one hand, the structure allows for effective cooperation
among various departments, better decision-making, and sharing of lessons learnt in the course
of project implementation. For these reasons, customers are likely to enjoy superior quality of
projects. However, since team members have two bosses, decision-making is often delayed
which negatively affects levels of customer satisfaction.

MATRIX ORGANIZATIONAL STRUCTURE 4

References

Kloppenborg, T. J., Anantatmula, V. S., & Wells, K. N. (2019). Contemporary Project
Management. Cengage.
Walden, M. (2019). The Project Manager’s Perspective on Performance Management
Implications in a Matrix Organizational Structure: A Case Study (Doctoral dissertation,
Northcentral University).